A new ENA (Ena Institute for Alternative Policies) study casts doubt on the government’s upbeat narrative about Greece’s investment momentum, revealing that growth not only lags far behind budget forecasts but is also driven almost entirely by construction—reinforcing the country’s narrow and long-standing economic model.
Despite being central to the government’s economic messaging, investment in Greece remains among the lowest in the EU, amounting to just 16% of GDP compared with the EU average of 21.2%. According to ENA’s findings, the actual trajectory of investment fails to support claims that reforms have significantly improved the investment climate.
The study highlights two key trends: investment growth is consistently weaker than projected, and the limited gains are overwhelmingly concentrated in construction.
Comparing forecasts with real data in the post-pandemic period, ENA notes that the 2023 budget predicted a 15.5% rise in investments, but the actual increase reached only 6.6%. Nonetheless, the next budget projected another 15.1% jump for 2024, while the outcome was 4.5%.
For 2025, the initial estimate was a more modest 8.4%, yet even this target appears out of reach after a downward revision to 5.7% in the latest budget. Still, the 2026 budget maintains an optimistic forecast of 10.2%.
Beyond the missed targets, ENA stresses a deeper issue: the quality of investments. Of the roughly 3.5 billion euros increase recorded in 2023–24, almost 3 billion euros—87%—came from construction. Housing alone contributed 42%, while other construction was 45%.
By contrast, all other categories combined—mainly machinery, equipment, and intellectual property products—amounted to less than 500 million euros. Notably, IT equipment investments fell by 228 million euros over the two-year period.
The data are clear: Greece’s investment landscape remains narrow, with little progress in key sectors for productivity and competitiveness. The long-promised shift to a more diverse, resilient growth model still hasn’t arrived.
By contrast, all other categories combined—mainly machinery, equipment, and intellectual property products—amounted to less than 500 million euros. Notably, IT equipment investments fell by 228 million euros over the two-year period.
The data are clear: Greece’s investment landscape remains narrow, with little progress in key sectors for productivity and competitiveness. The long-promised shift to a more diverse, resilient growth model still hasn’t arrived.
Source: tovima.com
